Provide that an irrevocable standby letter of credit may be accepted by the director as an alternative to a surety bond as a security deposit.This provision has been in effect under authority of temporary rules effective 7/18/03.



Provide that government securities, certificates of deposit, or time deposit accounts will not be accepted as new or replacement security deposits by self-insured employers effective January 1, 2004; require self-insured employers with existing securities of this type to complete a “Security Agreement and Notice to Intermediary,” Form 440-4023, granting the department a security interest in and control over those financial assets.



Provide that excess insurance coverage must be specific on a per occurrence basis, and that such coverage may include aggregate excess insurance.



Incorporate annual reporting requirements for self-insured employers formerly published only in Bulletin 209.



Require that future claim liability estimates or annual incurred losses include losses incurred but not reported.



Require that a new self-insured employer’s deposit is not less than the amount of the approved self-insured employer retention level for the employer’s excess workers’ compensation insurance.



Require that each entity included under a self-insurance certification enter into an agreement making the entity jointly and severally liable for payment of compensation and moneys due.

Prohibit a worker leasing company from providing workers’ compensation coverage to another leasing company.



Provide for assessment of civil penalties against worker leasing companies or prospective leasing companies that fail to meet the requirements of relevant rules. Provide penalty matrixes for worker leasing companies that violate these rules and for companies that operate as worker leasing companies without a license

For a copy of the rules, contact Publications at 503-947-7627, Fax 503-947-7630.

/s/ John L. Shilts

December 3, 2003

Authorized Signer

Date

John L. Shilts, Administrator, Workers’ Compensation Division

Printed name

*Copies include a photocopy of this certificate with paper and electronic copies of each rule listed in the Rulemaking Action.

**The Oregon Bulletin is published on the 1st of each month and updates the rule text found in the Oregon Administrative Rules Compilation. Notice forms must be submitted to the Administrative Rules Unit, Oregon State Archives, 800 Summer Street NE, Salem, Oregon 97310 by 5:00 p.m. on the 15th day of the preceding month unless this deadline falls on a Saturday, Sunday or legal holiday when Notice forms are accepted until 5:00 p.m. the preceding workday.